Realto, a marketplace for the secondary trading of illiquid real estate and alternative securities, has launched its platform by executing trades in Phillips Edison & Co. Class B restricted shares.
“The Realto team is excited to reach this milestone as we work to provide all investors with the daily liquidity opportunities and transparency that have not existed in the secondary trading of real estate and other illiquid securities,” said chief executive officer Brian King and president Jeff Kinney, co-founders of Realto.
Realto expects to receive clearance from the Securities and Exchange Commission in January to operate an alternative trading system, a designation that will allow it to offer additional secondary trading opportunities via enhancements such as additional order types and two-sided quotes, the company said.
“We are working hand-in-hand with institutions, asset managers, advisors and individuals to democratize trading of these assets…,” they added.
The company recently completed transactions in the restricted shares of Phillips Edison, a former non-traded real estate investment trust focused on grocery-anchored properties that began trading on the Nasdaq in mid-July 2021. However, the pre-IPO common stock of the non-traded REIT was converted into restricted Class B shares that cannot publicly trade on the open market until six months after the initial Nasdaq listing.
Realto Securities, a wholly-owned subsidiary of Realto, is a FINRA-registered broker-dealer based in Overland Park, Kansas.